Derivatives data suggests further crypto market decline, analysis shows

Derivatives data from futures and options markets indicates that the cryptocurrency market could continue to decline in the coming months, according to an analysis by CoinDesk. The report noted that the Cumulative Volume Delta (CVD) for the top 25 cryptocurrencies has turned negative, suggesting that short sellers are currently in control of the market. On the Deribit exchange, buying activity has been concentrated in put options, which are used for downside protection and bearish bets. CoinDesk also highlighted that approximately $1 billion in put option open interest is clustered around the $60,000 level. A break below this support could set the next downside target at $50,000. Market strength has been further weakened by over $200 million in futures liquidations over the past 24 hours, primarily affecting long positions that were betting on a price increase. The altcoin market has also stalled in response to these bearish signals from Bitcoin derivatives, failing to find clear rebound momentum and adopting a wait-and-see approach.